Forex refers to foreign Exchange (currency) and currency exchange takes place at Forex markets. Forex transactions involve sale of one currency by one party in exchange of another currency paid by other party.

Why Trade Forex?

The Forex market has become more beneficial in last ten years because of some major changes involved. Seasoned investors prefer it over the trading stocks, options, equity and commodities. Even traders with small capital base have tremendous opportunities to earn millions if they make use of realistic and best currency trading strategies. Though thousand of traders are reaping the profits by trading in Forex markets, there are several others who are still pondering 'Why Trade Forex?' Here lets us discuss some advantage of trading at FX markets.

Trading At Forex Markets Offers Following Advantages to Traders;

Low initial investments: When compared to trading the stocks or the commodities, initial costs are very low in Forex trading. Though some Forex brokers require minimum deposits, several others allow trading at as low as $1.

High Profit Potential: Forex trading offers high profit potential. You can make money both ways; when prices are falling and when prices are rising. If your Forex broker offers a particular currency pair, you can sell or buy a currency against any other currency.

High Liquidity: The Forex markets are the largest and the most liquid financial markets in the world. Traders can easily open and close their trades because of high trading volumes. The large size of the market ensures that no individual or even no institution can manipulate the markets to their advantage.

Trade Anytime and Anywhere

Forex market is open 24 hrs a day, 5 days a week. Traders can trade anytime between 3pm EST, Sundays and 4pm EST on Fridays. Moreover, most Forex brokers offer online trading and you can trade from anywhere, providing you have internet connectivity.

Other advantages include

High leveraging or buying power

You can edge personal savings while local currency is falling

No hidden fees and low transaction costs

Can we Make lots of money from currency trading strategies

Yes, it is true that if you trade in the Forex market you can make lots of money. However, there is a catch! Trading in Forex markets is a risky proposition; you need to be very disciplined and should have control of your financial investments in Forex markets. Some brokers offer high leveraging up to 400:1. This means if you have an account of $1000, you can enter positions worth $4, 00,000. If everything falls in place, you can make huge profits at once; otherwise you have equal risk of losing huge amounts. This high leveraging can result in high margin calls.

At first, keep in mind that Forex trading does not offer any get-rich-quick scheme. Before you get started, it is important that you make focused efforts to learn the nuances of the business and more importantly the currency trading strategies.

The framework of your currency trading strategies should include knowledge as well discipline. You should have approach the market with a plan in hand that should be followed with discipline. The most important strategy is to keep a close watch on the market trends and chart your plan using the data obtained. If you want to succeed in the Forex markets, always have some kind of risk management and stick to your plan no matter what happens.

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Forex Trading
FAQ's...

You may find
useful the information below containing questions that readers
have posted relating to Forex that our members have replied to...

19 Mar 2011 12:58:38 AM

Q1.
How much start-up capital do I need for a foreign exchange and stocks trading platform?

If you have ever watched currency exchange rates, you would notice that they fluctuate, up or down, depending on factors affecting the economic health of countries . Consider the following scenario:
1.Given that today’s exchange rate from GBP (Sterling) to EURO is 0.8609, Peter, sells 5000 worth of €s in British Sterling, thus holding £4304.50, excluding commissions and charges payable to his broker.
2.The exchange rate from GBP (Sterling) to EURO drops to 0.85530, and, Peter sells back £4304.50 to British Sterling, and, holds € 5032.74 on his account.
Peter holds …Exchange ratePeter buys …
Day 1€5,000.000.8609£4,304.50
Day 2£4,304.500.8553€ 5,032.74
What Peter earned …€5032.74 less €5000.00€32.74
Thus, Peter has earned €32.74, solely because of the fluctuation in the exchange rates.
The simple concept of trading foreign currency can be leveraged by anyone possessing a calculator, or a spreadsheet, thus empowering any individual with some spare cash, and, a personal computer to trade foreign exchange rates and make some money.
(Sourced from an article at http://www.scribd.com/doc/50098985/Managing-Markets-at-ETC-Buy-High-Sell-Low-February-2011).
What kind of start-up capital would it take to start up a foreign exchange trading platform website, preferably available also on smartphones, in Malta (EU-27)? What kind of start-up capital does it take to start up this business in other places?
In Malta the companies are regulated by the Malta Financial Services Authority, and, the banking industry is financially sound and well-regulated.

The best
answer for Q1...

4 Oct 2010 5:18:0 AM

Q2.
STOCK TRADING COURSE IN GURGAON?

Megamind Institute of Financial Markets Pvt Ltd (MIFM) offers courses both for students and professionals. For the former aimed at knowledge enrichment and job employ ability and for the latter focused at personal development within their domain and growth. Need we say more?
CFP Certification:
It is an internationally recognized certification which upgrades the knowledge of all aspects of personal finance. It is one of the fastest growing professions across the world. It signifies the importance of understanding the complexities of the financial products and services. It is a mark of big picture approach which is a pre-requisite for giving solution to the long-term financial problems of different individuals.
Technical Analysis:
If reading the pattern of stock market behavior is a problem for you, this course is the solution. It provides you tools for managing trading position. Its about generating tips & tricks for intra-day trading by using technical analysis. It provides you intensive training on how securities , price of equities , commodities etc. behave seeing the past behavior patterns of the markets and how to exploit that information to make money while avoiding losses.
Certificate in Stock Trading And Operation:
With the volumes being traded in the markets at all time high, interest of foreign & small domestic investors, stock markets are the buzz of newspaper headlines. CSTO course is specifically designed for its acceptance in the field of stock market and hence a competent day trader.
Certificate In Commodity And Currency Trading:
The legacy of Commodity trading was given to the world by India. The increased participation of India in world commodity trade has fuelled the demand for professional commodity traders. The Currency market in India has witnessed tremendous growth within one year of its inception. The Currency and Commodity market being niche financial market require trained professional and expertise.
CFA:
The CFA charter is respected as the gold standard of professional credentials within the global investment community. Administered by CFA Institute, the CFA Program offers you a graduate level curriculum and examination program intended to expand your working knowledge and practical skills relating to investment decision-making. Successful completion of the program and its requirements will earn you the CFA designation, one of the profession's most valued credentials.
About Level I and Level II classroom training:
--Special question bank of CFA Level 1 and Level 2 with detailed solutions
--100 hours of classroom instruction, and 10 hours of personalized one-on-one instruction depending upon the areas in which one needs specific help.
--Access to a data-bank of last 5 years' real CFA questions. First of its kind in India.
--All the classroom teaching content and methodology designed by Expert Faculties.
--Unlimited personalized doubt clearing with Faculty.
--Small batch sizes for Personal Attention.
--Special Performance Tracker System to track your performance throughout the course
--Complete mental training given to have the best possible execution in the "real six hours".
If you have any queries please do contact us. You can write to us, e-mail us or telephone us at the following address.
MEGAMIND INSTITUTE OF FINANCIAL MARKETS.
M – 8, 1ST FLOOR OLD DLF COLONY, SECTOR – 14,
GURGAON.
www.mifm.co.in

Megamind Institute of Financial Markets Pvt Ltd (MIFM) offers courses both for students and professionals. For the former aimed at knowledge enrichment and job employ ability and for the latter focused at personal development within their domain and growth. Need we say more?
CFP Certification:
It is an internationally recognized certification which upgrades the knowledge of all aspects of personal finance. It is one of the fastest growing professions across the world. It signifies the importance of understanding the complexities of the financial products and services. It is a mark of big picture approach which is a pre-requisite for giving solution to the long-term financial problems of different individuals.
Technical Analysis:
If reading the pattern of stock market behavior is a problem for you, this course is the solution. It provides you tools for managing trading position. Its about generating tips & tricks for intra-day trading by using technical analysis. It provides you intensive training on how securities , price of equities , commodities etc. behave seeing the past behavior patterns of the markets and how to exploit that information to make money while avoiding losses.
Certificate in Stock Trading And Operation:
With the volumes being traded in the markets at all time high, interest of foreign & small domestic investors, stock markets are the buzz of newspaper headlines. CSTO course is specifically designed for its acceptance in the field of stock market and hence a competent day trader.
Certificate In Commodity And Currency Trading:
The legacy of Commodity trading was given to the world by India. The increased participation of India in world commodity trade has fuelled the demand for professional commodity traders. The Currency market in India has witnessed tremendous growth within one year of its inception. The Currency and Commodity market being niche financial market require trained professional and expertise.
CFA:
The CFA charter is respected as the gold standard of professional credentials within the global investment community. Administered by CFA Institute, the CFA Program offers you a graduate level curriculum and examination program intended to expand your working knowledge and practical skills relating to investment decision-making. Successful completion of the program and its requirements will earn you the CFA designation, one of the profession's most valued credentials.
About Level I and Level II classroom training:
--Special question bank of CFA Level 1 and Level 2 with detailed solutions
--100 hours of classroom instruction, and 10 hours of personalized one-on-one instruction depending upon the areas in which one needs specific help.
--Access to a data-bank of last 5 years' real CFA questions. First of its kind in India.
--All the classroom teaching content and methodology designed by Expert Faculties.
--Unlimited personalized doubt clearing with Faculty.
--Small batch sizes for Personal Attention.
--Special Performance Tracker System to track your performance throughout the course
--Complete mental training given to have the best possible execution in the "real six hours".
If you have any queries please do contact us. You can write to us, e-mail us or telephone us at the following address.
MEGAMIND INSTITUTE OF FINANCIAL MARKETS.
M – 8, 1ST FLOOR OLD DLF COLONY, SECTOR – 14,
GURGAON.
www.mifm.co.in

Q4.
What would happen if one day there was a forex trader who managed to accumulate all the worlds currency?

I am just wondering in your opinion, I had a thought about forex trading, and I know there are absolute loads of opportunies every day to double your money in the forex market, and I know that there is about $3.2 trillion exchanged every day in the forex market also. That's about $1.4 quadrillion every year.
If one day there was an extremely skilled master forex trader who took, say, $100, and doubled it every day (if that was even possible!), and they accumulated most of the words cuurency, what would our respective governments do? Would this person have ultimate power over the whole world? Could he do what he/she wanted wherever they wanted etc?

The best
answer for Q4...

hi
it wont possible but one can become rich and forex has been producing lot of new millionaires every year

8 Sep 2009 12:05:40 AM

Q5.
Why are people at the UN Conference Suggesting a New World Currency?

The United Nations Conference on Trade and Development said in a report published Monday that the U.S. dollar should be replaced as the world’s standard reserve currency, giving rise to a new global currency managed by an as-yet undetermined financial regulatory organization.
http://rawstory.com/08/news/2009/09/07/united-nations-calls-for-new-world-currency/
Matt. They will get their way no matter what and you know this. Its almost time to pick a side.

The best
answer for Q5...

We must get more support for this Resolution by rep Michelle Bachmann. It already has 37 Cosponsors including Ron Paul.
http://thomas.loc.gov/cgi-bin/query/z?c111:H.J.RES.41: